Being financially savvy means you can redirect your cash on the things that matter most. Whether you’re planning a trip around the world, saving up for a big celebration or you simply want to safeguard your future, prioritising your expenditure will give you the opportunity to achieve your financial goals. If you want to cut costs and reassess your budget, take a look at these five things you never need to spend money on:
- The Newest Phone
Sure, it’s nice to upgrade your phone once in a while, but do you really need the newest model? Most phone manufacturers release a new model every year, which means splurging on the latest release will set you back a few hundreds of pounds every 12 months. However, compare your current model to the latest versions and you’ll probably find there’s very little difference between the two.
- New Cars
Buying a brand-new car is one of the easiest ways to waste money. As soon as you drive it off the forecourt, you’ll lose thousands off its value, so why spend money you don’t need to? When you buy used cars, you can benefit from warranties and guarantees, and you’ll find that many used cars for sale are only one or two years old. This means you can get that ‘new car feel’, without buying a car that’s come straight off the production line.
- Takeaway Drinks
It might be nice to treat yourself to a fancy coffee every once in a while, but doing so regularly will have a major impact on your budget. If you buy a takeaway coffee on your way to work every day, for example, it can easily cost around £80-£100 month. If you make your drinks at home and take them with you in an insulated flask, however, you can enjoy a fancy coffee for a fraction of the price. What’s more – switching from disposable cups to a travel mug will help to protect the environment too.
- Public Wi-Fi
When you’re out and about and you need to use the internet, don’t assume that you need to pay to access public Wi-Fi. If your own data allowance has run out, there are plenty of public Wi-Fi hotspots that are available to use completely free of charge. In fact, many phone networks have a map of them on their website, so be sure to check in advance so can take advantage of free internet access next time you’re out.
- Late Payment Fees
Paying your bills late is a fast-track way to use up your disposable income and wreck your credit rating. Even if you pay in full, a late payment will show up on your credit report and make you look like a risky borrower to potential lenders. In addition to this, you’ll be charged expensive late fees that are always best avoided.
Reduce Your Costs and Enhance Your Life
Living on a budget doesn’t have to mean going without luxuries or living miserably. Instead, it simply means you’ll be prioritising what to spend your money on. By doing so, you can increase your savings and spend your funds on the things you actually enjoy, rather than the things you’ve got into a habit of buying.